Why Is Wolfspeed Stock Jumping Today?

Group 1 - Wolfspeed's shares increased by 5.8% amid a broader market decline, following a significant 115% surge over the past week due to news of its impending exit from Chapter 11 bankruptcy [1] - The bankruptcy court approved Wolfspeed's plan to eliminate $4.6 billion in debt, leading to a 70% reduction in total debt and a 60% decrease in annual interest expenses [2] - The company has received over 97% support from senior note holders and two-thirds of convertible note holders, anticipating a bankruptcy exit in a matter of weeks [3] Group 2 - Despite the positive developments regarding debt reduction, Wolfspeed faces challenges in the electric vehicle (EV) market, where sales are currently slowing [5] - The company's chips are well-suited for EV power requirements, but the recent decline in EV sales presents significant hurdles [5] - Investors are beginning to recognize these ongoing challenges, which may impact stock performance despite the recent euphoria surrounding the bankruptcy news [5]